Indiana State Teachers' Retirement Fund, Indianapolis, is searching for a manager to run $140 million in active domestic "smid-cap" growth equities and one or two firms to run a $100 million to $200 million global TAA portfolio, said Steffanie Rhinesmith, equity analyst, who is helping coordinate the searches. If the $3.9 billion plan hires two global TAA managers, it would assign $100 million to each one.
Funding for the "smid-cap" search will come from $140 million parked in a RhumbLine Advisers S&P 600 index fund; the plan's board wants to move the money to active management. RhumbLine will continue to manage a $350 million S&P 500 index fund for the plan.
Global TAA funding will come from reducing $587 million Russell 3000 index fund run by Barclays Global Investors. The board had set aside that money for hedge funds or similar vehicles, but chose not to invest in those areas for a number of reasons, including lack of transparency.
The requests for indication of interest for both searches are available at www.in.gov/trf. Managers should contact consultant Callan Associates to indicate their interest in either search by Feb. 25, and managers that aren't in Callan's investment manager database must complete a questionnaire by March 11. The fund's investment committee, assisted by Callan, will choose candidates for each search and issue RFPs in April. Global TAA proposals are due May 10, and "smid-cap" proposals are due May 15. The fund expects to make selections in June.